M EASURABLE PERFORMANCE OBJECTIVES AND INDICATORS

PART 2 SUPPORTING DOCUMENTATION

2.3 M EASURABLE PERFORMANCE OBJECTIVES AND INDICATORS

Table 34 MBRR Table SA6 - Reconciliation between the IDP strategic objectives and budgeted capital expenditure

Table 35 MBRR Table SA7 - Measurable performance objectives

2016/17 2017/18 2018/19

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2020/21

Budget Year +1 2021/22

Budget Year +2 2022/23 City Planning

HS2.22 Average number of days taken to process building plan applications

Number 0 0 24 days 30 days 30 days 30 days 30 days 30 days 30 days

Number of townships regularized Number 5 39 8 15 0 0 6 6 6

Percentage of development planning applications

finalized in accordance with the approved MSDF Percentage 94% 100% 100% 96%

98% 98% 98%

% of dolomitic land unlocked Percentage 80% 90% 100% 90% 0% 90% 90% 90% 90%

Energy

EE1.11 Number of dwellings provided with connections to mains electricity supply by the municipality

Number 0.00

6000.00

1842.00

6000.00 0.00

6000.00 6000.00 6000.00 6000.00

EE3.11 Percentage of unplanned outages that are restored to supply within industry standard timeframes

Percentage 0% 75% 75% 75% 0% 75% 75% 75% 75%

EE3.21 Percentage of planned maintenance performed

Percentage 0% 90% 90% 90% 0% 90% 90% 90% 90%

EE4.12 Installed capacity of approved embedded generators on the municipal distribution network

MW 0 2MW 1,3539MW

1MW 0

1MW 0.85MVA 0.85MVA 0.85MVA

Number of high mast lights installed Number 80 0 55 0.8 0 0.8 80 80 80

Number of street lights installed Number 600 1585 90 600 0 600 600 600 600

Percentage down time of network availability Percentage 0,8% 0,8% 1% 0.8% 0% 0.8% 0.8% 0.8% 0.8%

Percentage total electricity losses Percentage 11% 12% 11.99% 12% 12.8% 12.8% 12.8% 12.8% 12.8%

Number of PV Solar lighting units installed in informal settlements

Number

15000 12810 10045

10000 0

10000 10000 10000 10000

Environmental Resource and Waste Management Services

ENV 3.11 Percentage of known informal settlements

receiving integrated waste handling services Percentage 100% 100% 100%

100%

100% 100% 100% 100%

ENV 4.11 Percentage of biodiversity priority areas within the metro

Percentage 0% 0% 36%

36%

36% 36% 36% 36%

ENV 4.21 Proportion of biodiversity priority areas protected

Percentage 0% 0% 1%

1% 1% 1% 1%

Cleanliness level of Ekurhuleni Metro central business district (CBD) areas as determined by WMS Gauteng Waste Standards

Level Level 2 Level 2 Level 1

Level 3 0

Level 3 Level 3 Level 3 Level 3

Number of formal households with access to refuse removal

Number

674385 682541 701645 701645 718655 718655 718655 718655 718655

Number of parks upgraded. Number 5 5 1 5 0 5 5 5 5

Number of cemeteries upgraded Number 5 5 1 4 0 4 6 6 6

Human Settlements

HS 1.12 Number of formal sites serviced Number 0 7006 2814 2001 206 206 2209 2209 2209

Number of title deeds issued to beneficiaries Number 0 3544 445 4000 0 4000 4000 4000 4000

Number of informal settlements provided with interim services

Number 119 118 119 119 0 119 119 119 119

Roads and Storm Water

TR6.11 Percentage of unsurfaced roads upgraded Percentage 0% 0% 111.50% 100% 0% 100% 50% 50% 50%

TR6.12 Percentage of surfaced municipal road lanes which have been resurfaced and resealed

Percentage 0% 0% 114%

100% 0%

100% 2% 2% 2%

KM of roads constructed KM 67 41.123 8401 21.6 KM 17.8 KM 17.8 KM 21.26KM 21.26KM 21.26KM

KM of road network maintained KM 1332 3715.079 809.4496336 2840 KM 2480 KM 2480 KM 2440KM 2440KM 2440KM

Number of systems added to the existing stormwater network

Number 64 83 17

23 0

23 21 21 21

Number of Stormwater systems maintained Number 6500 12180 2701 11000 0 11000 10000 10000 10000

KM of Non-motorized transport network expanded KM 0 0 11.401 16.02KM 0 16.02KM 21.55KM 21.55KM 21.55KM

Description Unit of measurement

Current Year 2019/20 2020/21 Medium Term Revenue & Expenditure Framework

2016/17 2017/18 2018/19

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2020/21

Budget Year +1 2021/22

Budget Year +2 2022/23 Transport and Fleet Management

Length of pedestrian and cyclist paths completed (NMT

KM 11 4.72 3. 039 km 5 KM 0 5 KM

5KM 5KM 5KM

Water and Sanitation

WS2.11 Number of new water connections meeting minimum standards

Number 0 2284 2314

1500 0

1500 1500 1500 1500

WS3.11 Percentage of complaints/callouts resolved within 48 hours (Sanitation/Waste water)

Percentage 0% 0% 96%

90%

90% 90% 90% 90%

WS3.21 Percentage of Complaints/Callouts resolved within 48 hours (water)

Percentage 0% 0% 97%

90%

90% 90% 90% 90%

WS5.31 Water connections metered as a percentage

of total connections Percentage 0% 0% 92.70% 93.00% 0% 93.00% 93.00% 93.00% 93.00%

KM of water and sewer pipes replaced, upgraded and extended

KM 50 41.75 17235

10 KM 6 KM 6 KM 7.5 7.5 7.5

Number Resevoirs constructed Number 20 45ML 2 4 3 3 4 4 4

Percentage reduction in Non-Revenue Water (NRW) Percentage 34% 32% 33.3% 32.45% 0% 32.45% 31.65% 31.65% 31.65%

% compliance with Blue drop standards Percentage >95% >95% >95% >95% 0% >95% >95% >95% >95%

Disaster Management & Emergency FE1.11 Percentage compliance with the required attendance time for structural firefighting incidents

Percentage 75% 77% 81% 66% 0% 66% 66% 66% 66%

Number of fire stations constructed Number 2 1 1 0 1 1 1 1

EMPD

Number of planned by-law enforcement policing operations implementated

Number 60 119 30 60 80 80 100 100 100

Number of interventions implemented to reduce crime and related incidents

Number 80 390 108 360 0 360 360 360 360

Percentage increase in road policing operations Percentage 10% 10% 15,87%(1615609 )

10% 0% 10% 10% 10% 10%

Percentage decrease in road fatalities Percentage 2% -53% 17.6%(466) 2% 0% 2% 2% 2% 2%

Health and Social Development

ENV 1.3 Percentage of households experiencing a

problem with noise pollution Percentage 0% 0% 0.00001539

0.013%

0.013% 0.012% 0.012% 0.012%

Percentage of babies tested HIV-positive (PCR) around 10 weeks

Percentage <2.11% <0.7% 1% <2% 0% <2% <2% <2% <2%

Number of new indigent households approved Number 5300 10369 3543 9000 0 9000 10000 10000 10000

SRAC

Number of SRAC school activities/programmes implemented

Number 16 41 6

18 0

18 18 18 18

Real Estate

Number of land parcels released for developments

city wide Number 15 557 167

25 0

25 25 25 25

City Manager

GG 3.1 Audit Opinion Audit Opinion Unqualified Unqualified 0 Unqualified

without findings

0 Unqualified

without findings Unqualified without findings

Unqualified without findings

GG 3.11 Number of repeat audit findings Number 0 0 0 55 0 55 55 55 55

Financial Services

HS2.21 Percentage of rateable residential properties in the subsidy housing market entering the municipal valuation roll

Percentage 0% 0% 100% 100% 0% 100% 100% 100% 100%

GG 6.11 Percentage of the municipality’s operating budget spent on free basic services to indigent households

Percentage 0% 0% 2.4%

9.21% 7.42% 7.42% 3%(5.71%) 3%(5.71%) 3%(5.71%)

% of Billed Amounts Collected Percentage 94% 93% 89.56% 94% 0% 94% 94% 94% 94%

% of tenders completed within the valid period (120

days from date of close of advert) Percentage 85% 89% 90.91% 90% 0% 90% 90% 90% 90%

Human Resource Management and Development

GG 1.21 Staff vacancy rate Percentage 0% 0% ≤12,22 % ≤20 % 0% ≤20 % ≤20 % ≤20 % ≤20 %

GG5.11 Number of active suspensions longer than three months

Number 0 0 0

15 0

≤15% ≤15% ≤15%

GG5.12 Quarterly salary bill of suspended officials - Rand 0 0 657227 ≤R5.6M 0 ≤R5.6M ≤5.6M ≤5.6M ≤5.6M

Description Unit of measurement

Current Year 2019/20 2020/21 Medium Term Revenue & Expenditure Framework

2016/17 2017/18 2018/19

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2020/21

Budget Year +1 2021/22

Budget Year +2 2022/23 Legislature

GG 2.11 Percentage of ward committees with 6 or more ward committee members (excluding the ward councillor)

Percentage

0% 0% 98% 98% 0% 98% 96% 96% 96%

GG 2. 12 Average number of councillor-convened community meetings per ward

Percentage

0% 0% 104% 85% 0% 85% 55% 55% 55%

GG 4.11 Number of agenda items deferred to the

next council meeting Number

0 0 0 <10 0 <10 <10 <10 <10

GG3.12 Percentage of councillors who have

declared their financial interests Percentage

0% 0% 100% 100% 0% 100% 100% 100% 100%

Number of Functional Section 79 Committees Number 19 18 18 18 0 18 18 18 18

Percentage functionality of ward commmittees Percentage 11200% 99% 98% 98% 0% 98% 96% 96% 96%

Corporate Legal Services

Number of the Municipality By-laws reviewed Number 0.4 24 1 4 0 4 4 4

Communications and Brand Management

Number of Brand Visibility interventions implemented

Number 12 17 2

8 8 8

Number of media analysis reports developed Number 41 12 3 4 0 4 4 4

Enterprise-wide Project Management Office

Project Management maturity level Level 3 3 3 3 0 3 3 3 3

Percentage capex spend against the budget for capital projects allocated to CoE departments

Percentage 95% 89% 66%

95%

95% 95% 95% 95%

ICT

KM of (fibre) broaband installed and commissioned KM 200 150.41 75km 200KM 0 200KM 200KM 200KM 200KM

Number of Wi-Fi hotspots /nodes provided with Wi-FiNumber 200 0 202

200 0

200 200 200 200

Number of ERP modules implemented Number 5 6 3 20 0 20 20 20 20

Internal Audit

% of forensic investigations finalized Percentage 60% 67% 60.53% 60% 0% 60% 60% 60% 60%

% completionof the approved internal audit plan Percentage 90% 67% 207.41 % 100% 0% 100% 100% 100% 100%

Risk Management

Level of CoE compliance maturity recorded Number 0 4 3.8 4 0 4 4 4 4

Office of the COO

Percentage of customer queries resolved in accordance with Ekurhuleni Service Standards

Percentage 85% 95% 94%

93%

93% 93% 93% 93%

Economic Development

GG 6.12 Number of work opportunities created through EPWP, CWP and other related infrastructure programmes

Number 18000 2158 2636 15000 14000 14000

14000 14000 14000

Number of Tertiary Bursary recipients benefiting from the City of Ekurhuleni's Community Bursary Scheme

Number 0 502 1080

1000 0

1000 1000 1000 1000

Number Of Young People benefiting from Community

Skills Programme Number 0 1559 542 1500 700 700

1500 1500 1500

Rand value of projects allocated to emerging

contractors Rand 0 49658308.18 R39 769 148.35 100000000 48000000 48000000

50000000 50000000 50000000

Rand value generated by EFPM Rand R19 m 23230160.44 R6 147 797.23 26400000 0 26400000 26400000 26400000 26400000

Rand value of investment attracted Rand R7 bn 4059230 5170000000 6 Billions 0 6 Billions 6 Billion 6 Billion 6 Billion

Description Unit of measurement

Current Year 2019/20 2020/21 Medium Term Revenue & Expenditure Framework

The following table sets out the City of Ekurhuleni main performance objectives and benchmarks for the 2020/21 MTREF.

Table 36 MBRR Table SA8 - Performance indicators and benchmarks

2.3.1 Performance indicators and benchmarks

 2.3.1.1 Borrowing Management

 Capital expenditure in local government can be funded by capital grants, own- source revenue and long-term borrowing. The ability of a municipality to raise long-term borrowing is largely dependent on its creditworthiness and financial position. As with all other municipalities, City of Ekurhuleni borrowing strategy is primarily informed by the infrastructure needs and affordability of debt repayments. The structure of the metro’s debt portfolio is dominated by municipal bonds. The following financial performance indicators have formed part of the compilation of the 2020/21 MTREF.

2016/17 2017/18 2018/19 Audited

Outcome Audited Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Pre-audit outcome

Budget Year 2020/21

Budget Year +1 2021/22

Budget Year +2 2022/23 Borrowing Management

Credit Rating

Capital Charges to Operating Expenditure

Interest & Principal Paid /Operating Expenditure

4.3% 4.3% 3.5% 5.3% 2.7% 5.2% 5.2% 3.3% 3.2% 3.1%

Capital Charges to Own Revenue Finance charges &

Repayment of borrowing /Own Revenue

5.2% 4.9% 4.2% 6.0% 3.1% 5.9% 5.9% 3.7% 3.6% 3.5%

Safety of Capital

Gearing Long Term Borrowing/ Funds

& Reserves

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Liquidity

Current Ratio Current assets/current

liabilities

1.5 1.2 1.1 1.7 – 1.2 1.2 1.1 1.1 1.1 Current Ratio adjusted for aged

debtors

Current assets less debtors >

90 days/current liabilities

1.5 1.2 1.1 1.7 – 1.2 1.2 1.1 1.1 1.1

Liquidity Ratio Monetary Assets/Current

Liabilities

0.7 0.4 0.4 1.1 – 0.6 0.6 0.6 0.6 0.6 Revenue Management

Annual Debtors Collection Rate (Payment Level %)

Last 12 Mths Receipts/Last 12 Mths Billing

92.7% 94.2% 91.1% 93.3% -6.7% 86.6% 86.6% 75.5% 78.1%

Current Debtors Collection Rate (Cash receipts % of Ratepayer &

Other revenue)

92.7% 94.2% 91.2% 93.3% -6.7% 86.6% 86.6% 75.5% 78.1% 77.8%

Outstanding Debtors to Revenue Total Outstanding Debtors to Annual Revenue

18.9% 21.1% 17.5% 13.6% 0.0% 13.2% 13.2% 11.5% 9.9% 10.5%

Creditors Management

Creditors System Efficiency % of Creditors Paid Within Terms (within`MFMA' s 65(e))

84.0% 85.0% 84.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0%

Creditors to Cash and Investments

106.2% 196.5% 210.7% 108.7% 0.0% 138.2% 138.2% 148.1% 130.8% 124.2%

Employee costs Employee costs/(Total

Revenue - capital revenue)

20.8% 22.8% 24.1% 24.8% 24.1% 24.1% 24.1% 24.3% 24.2% 24.2%

Remuneration Total remuneration/(Total

Revenue - capital revenue)

21.2% 23.2% 24.5% 25.2% 24.4% 24.4% 24.7% 24.6% 24.5%

Repairs & Maintenance R&M/(Total Revenue excluding capital revenue)

7.1% 6.5% 7.0% 7.8% 7.0% 7.0% 7.3% 7.2% 7.1%

Finance charges & Depreciation FC&D/(Total Revenue - capital revenue)

10.1% 10.6% 10.1% 8.5% 8.3% 8.3% 8.3% 8.7% 8.4% 8.2%

IDP regulation financial viability indicators

ii.O/S Service Debtors to Revenue

Total outstanding service debtors/annual revenue received for services

24.7% 28.9% 23.4% 17.5% 0.0% 17.5% 17.5% 15.1% 12.9% 13.7%

iii. Cost coverage (Available cash + Investments)/monthly fixed operational expenditure

2.9 1.6 1.3 2.1 (0.4) 1.6 1.6 1.6 1.7 1.7 Description of financial indicator Basis of calculation

Current Year 2019/20 2020/21 Medium Term Revenue

& Expenditure Framework

 Capital charges to operating expenditure is a measure of the cost of borrowing in relation to the operating expenditure. It can be seen that the cost of borrowing is slightly increasing is 3.3% in 2020/21. The stable percentage is maintained despite the fact that Council’s capital budget is increasing significantly over the MTREF period.

 Capital charges to Own Revenue is a measure of the cost of borrowing in relation to the Own Revenue. It can be seen that the cost of borrowing will decrease from 5.9% to 3.5% over 2020/21 MTREF.

2.3.1.2 Safety of Capital

 The gearing ratio is a measure of the long-term borrowings (non-current) over funds and reserves.

2.3.1.3 Liquidity

 Current ratio is a measure of the city’s ability to pay short-term obligations with its short-term assets. The higher the ratio, the better the metro’s ability to adhere to its short-term obligations.

 The liquidity ratio is a measure of the ability of the city to utilise cash and cash equivalents to extinguish or retire its current liabilities immediately. Ideally the municipality should have the equivalent cash and cash equivalents on hand to meet at least the current liabilities, which should translate into a liquidity ratio of 1. Anything below 1 indicates a shortage in cash to meet creditor obligations

2.3.1.4 Revenue Management

 The annual debtors’ collection rate indicates the percentage payment levels of the metro. It indicates at what levels the metro receives payments owed, in terms of receivables, from its customers. It is also used to establish whether credit control has been efficiently managed.

2.3.1.5 Creditors Management

 The efficiency ratio is predicted to improve to 90% as a results from the capacity building programme in the Supply Chain Management Division.

2.3.1.6 Other Indicators

 The electricity distribution losses, as per the audited financial statements, were as follows:

o 2015/16– 15.64%

o 2016/17– 15.64%

o 2017/18 –12.39 % o 2018/19 – 11.95%

It is forecasted at a rate of 10% for the MTREF period until 2022/23

 The water distribution losses, as per the audited financial statements, were as follows:

o 2015/16– 30.60%

o 2016/17 – 30.60%

o 2017/18 – 30.57%

o 2018/19 – 28.45%

It is forecasted at a rate of 30% for the MTREF period until 2022/23.

 Employee costs and remuneration as a percentage of revenue (excluding capital o Revenue) remains steady over the MTREF period. The averages of the

ratios are 24.3% respectively over the MTREF period.

 Repairs and maintenance as a percentage of revenue (excluding capital revenue) needs to be at an appropriate level to ensure that capital assets remain efficient and perform and an optimal level. The average ratio is 7.3% over the MTREF period.

 Finance charges and depreciation as a percentage of revenue (excluding capital revenue) is dependent on borrowing, interest rate levels, and the rate of depreciation of capital assets. As a result of the reduction in borrowings, the rate decreases from 8.3% in 2019/20 to 8.2% over the MTREF.

2.3.1.7 IDP regulation financial viability indicators

 Debt Coverage is the coverage of revenue (excluding operating grants) over debt- service and is an indication of the metro’s ability to meet annual interest and principle payments on debt. The coverage is expected to be 33.2% in 2020/21.

 Outstanding service debtors to revenue ratio is an indication of what percentage of revenue is in outstanding service debtors. This is also an indicator of the city’s +effectiveness in managing credit control and debt collection. The lower the ratio, the more effective the management of receivables. The ratio is estimated to be 15.1% in 2020/21 and is expected to move to 12.9% in 2021/22.

 Cost coverage is an indication of the City’s ability to cover fixed operational expenditure with its cash and investment balances.The higher the ratio,the higher the ability. The ratio is estimated at 1.6% in 2020/21 and is expected to be at 1.7%

over the MTREF period.

2.3.2 Free Basic Services: basic social services package for indigent households The social package assists residents that have difficulty paying for services and are registered as indigent households in terms of the Indigent Policy of the City.

For the 2020/21 financial year, 165 000 registered indigents have been provided for in the budget which includes the deemed indigents.

In terms of the municipality’s Indigent Policy, registered indigent households are entitled to 9 kl free water, 100 kWh of electricity, 9 kl sanitation and free waste removal equivalent to a residential once a week service, and a full rebate on their property rates.

100

Further detail relating to the number of households receiving FBS, the cost of FBS, highest level of FBS and revenue cost associated with FBS is contained in Table 31 MBRR A10 (Basic Service Delivery Measurement) on page 80.

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